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HomeMy WebLinkAboutMinutes - 2003.02.27 - 35792CHUCK MOSS Chairperson LAWRENCE A. OBRECHT Vice Chairperson VINCENT GREGORY Minority Vice Chairperson February 27, 2003 Chairperson Moss called the meeting of the Finance Committee to order at 9:00 a.m., in Committee Room A, Commissioners' Wing, County Service Center, Pontiac, Michigan. COMMITTEE MEMBERS PRESENT : Chuck Moss, Chair; Vincent Gregory, Minority Vice Chair; Hugh D. Crawford; Peter Webster; Thomas Middleton; George Suarez. COMMITTEE MEMBERS ABSENT WITH NOTICE: Lawrence A. Obrecht, Chuck Palmer, William Patterson, Helaine Zack. OTHERS PRESENT : ARTS, CULTURE & FILM Kristie Everett Zamora, Arts Coordinator AVIATION Pat Shull, Supervisor CORPORATION COUNSEL Judy Cunningham, Corporation Counsel COUNTY EXECUTIVE Robert Daddow, Assistant Deputy Jerry Poisson, Assistant Deputy FISCAL SERVICES Tim Soave, Manager LaVerne Smith, Supervisor Joe Matkosky, Supervisor Stefania Rodgers, Supervisor Lynn Sonkiss, Chief Michael Pohlod, Analyst Linda Pearson, Analyst INFORMATION TECHNOLOGY Mike Wilk, Deputy Director Janette McKenna MANAGEMENT & BUDGET Ed Poisson, Deputy Director PERSONNEL Judy Eaton, Director Karen Jones, Labor Specialist SHERIFF Mike McCabe, Chief of Staff Damon Shields, Captain Tim Atkins, Lieutenant TREASURER Patrick Dohany, Treasurer OTHERS/CITIZENS J. Michael Dornan, Wixom City Manager Anthony Nowicki, As st. City Manager OAKLAND PRESS Charlie Crumm, Reporter FREE PRESS Kathy Gray, Reporter BOARD OF COMMISSIONERS James H. VanLeuven, Administrative Director Harvey Wedell, Analyst Helen Hanger, Sr. Committee Coordinator APPROVAL OF THE PREVIOUS MINUTES OAKLAND COUNTY BOARD OF COMMISSIONERS 1200 N. TELEGRAPH ROAD, PONTIAC, MI 48341-0470 Telephone (248) 858 -0100 FAX (248) 858-1572 FINANCE COMMITTEE Charles Palmer William Patterson Hugh D. Crawford Peter Webster Thomas Middleton George Suarez Helaine Zack FINANCE COMMITTEE Page 2 February 27, 2003 Suarez moved approval of the minutes of February 6, 2003, as printed. Supported by Gregory. Motion carried on a voice vote. PUBLIC COMMENT: None. 5. CONTINGENCY REPORT There are no items on today's agenda that will affect the Conting ency Fund; therefore, the balance will remain at $276,274. CONSENT AGENDA 6a. RESOLUTION TO AUTHORIZE OAKLAND COUNTY WATER SUPPLY REFUNDING BONDS (CITY OF ORCHARD LAKE VILLAGE - 2003) The City of Orchard Lake Village is requesting authorization to refu nd outstanding 1994 Prior Bonds of $2,605,000, for the City of Orchard Lake Village Water Supply System, at favorable interest rates expected to result in a savings of $286,158 for the City of Orchard Lake. 6b. RESOLUTION TO AUTHORIZE OAKLAND WATERFORD I RON REMOVAL FACILITIES REFUNDING BONDS, SERIES 2003 Waterford Township is requesting authorization to refund outstanding 1992 Prior Bonds of $2,900,000, for the Waterford Water Supply System Iron Removal Water Treatment Facilities, at favorable interest ra tes expected to result in a savings of $122,058 for Waterford Township. 6c. DRAIN COMMISSIONER - PEBBLE CREEK DRAINAGE DISTRICT REFUNDING The Pebble Creek Drain Drainage Board is requesting authorization to refund outstanding Series 2003 bonds of $2,450,000, at favorable interest rates expected to result in a savings of $158,270 for the Drainage Board. 6d. DRAIN COMMISSIONER - ACACIA PARK CSO DRAINAGE DISTRICT The Acacia Park CSO Drain Drainage Board is requesting authorization to refund outstanding Series 1994B and Series 1995C bonds of $4,400,000, at favorable interest rates expected to result in a savings of $327,630 for the Drainage Board. 6e. TREASURER - BLOOMFIELD HILLS CSO DRAINAGE DISTRICT, DRAIN REFUNDING BONDS, SERIES 2003 - FULL FAITH AND CREDIT RESOLUTION The Bloomfield Hills CSO Drainage District Drainage Board is requesting authorization to refund outstanding Series 1994A bonds of $1,300,000, at favorable interest rates expected to result in a savings of $150,564 for the Drainage Board. 6f. TREASURER - CHESTER DRAINAGE DISTRICT, DRAIN REFUNDING BONDS, SERIES 2003 - FULL FAITH AND CREDIT RESOLUTION The Chester Drainage District Drainage Board is requesting authorization to refund outstanding Series 1995 bonds of $1,950,000, at favorable in terest rates expected to result in a savings of $197,519 for the Drainage Board. 6g. TREASURER - CRAKE DRAINAGE DISTRICT, DRAIN REFUNDING BONDS, SERIES 2003 - FULL FAITH AND CREDIT RESOLUTION The Crake Drainage District Drainage Board is requesting aut horization to refund outstanding Series 1991 bonds of $1,400,000, at favorable interest rates expected to result in a savings of FINANCE COMMITTEE Page 3 February 27, 2003 $108,878 for the Drainage Board. 6h. TREASURER - CADDELL DRAINAGE DISTRICT, DRAIN REFUNDING BONDS, SERIES 2003 - FULL FAITH AND CREDIT RESOLUTION The Caddell Drainage District Drainage Board is requesting authorization to refund outstanding Series 1994 bonds of $1,300,000, at favorable interest rates expected to result in a savings of $2,100,000 for the Drainage Board. Crawford moved to recommend approval of the attached suggested Fiscal Notes for Consent Agenda Items 6a. - 6h. Supported by Middleton. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. REGULAR AGENDA 7. TREASURER'S OFFICE - POLICY FOR COUNTY PARTICIPATION IN DOWNTOWN DEVELOPMENT AUTHORITIES (DDAS) AND LOCAL DEVELOPMENT FINANCE AUTHORITIES (LDFAS) WITH TAX INCREMENT FINANCING The Board of Commissioners' Tax Increment Financing District Review Policy Ad Hoc Review Committee is recommending that the current policy for participation in Downtown Development Authorities and Local Development Finance Authorities with tax increment financing be amended to provide for negotiation and, if necessary, to opt -out of participation in these districts. Mr. Dohany explained that the proposed changes to the policy are being recommended by the Ad Hoc Review Committee to provide more flexibility when considering DDA proposals. Mr. Dornan stated that he had received a copy of the polic y yesterday and had not had a chance to review the proposed changes. One of his concerns is the proposed change regarding declining property values. Following the input they had received from the Ad Hoc Committee last year, Wixom has continued to develop its DDA plan and is requesting that the committee postpone action on this item until the City had a chance to thoroughly review these changes and discuss them with County staff. Mr. Crawford indicated he would prefer that this item not be addressed tod ay so that Wixom and Highland Township could review this information. Mr. Potter stated he also had some concerns and indicated he would like to see a policy developed that would help both the communities and the county in analyzing future proposals. Ms. Cunningham commented that the language being proposed regarding declining property values is directly taken from state statute. The burden to demonstrate this requirement is on the requesting community. Mr. Dohany stated that the document was a work in progress and that the Ad Hoc Committee did not have a problem with it being referred back for further discussion. He advised the Finance Committee he would be happy to meet with Wixom's representatives to review the revisions to their plan. Crawford moved to postpone this item until the April 10, 2003, Finance Committee meeting. Supported by Suarez. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 8. MR #03028 - SHERIFF DEPARTMENT - USE OF FORFEITED FUNDS F OR PURCHASE OF FINANCE COMMITTEE Page 4 February 27, 2003 200 OF THE ADVANCED TASER M26 The Sheriff is requesting authorization to utilize $145,000 of its current forfeiture fund balance of $659,273.79 for the purchase of 200 Advanced Taser M26 to be used for law enforcement purposes in compliance with state law. Captain McCabe reported that state statute allows law enforcement agencies to use these forfeiture funds to enhance law enforcement efforts. There are over 1,000 agencies across the country currently utilizing tasers as part of their law enforcement efforts. Orange County, Florida has used tasers for a number of years and has experienced an 80% reduction in injuries to officers and offenders. On -going expenses will be paid for by the forfeiture fund. Suarez moved to recommend approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 9. COUNTY EXECUTIVE/ARTS, CULTURE & FILM - MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS BY FISCAL YEAR 2003 ADMINISTRATION PROGRAM GRANT APPLICATION AND ACCEPTANCE The Michigan Council for Arts and Cultural Affairs Administration Program has awarded Oakland County FY 2003 funds of $13,700. This is a 2.14% decrease from the previous year's award. The County in-kind match will consist of local and private contributions received and expended by the County Executive/Arts Culture and Film General Fund. The resolution authorizes acceptance of this grant agreement. Ms. Zamora distributed information on the current and previous year's minigrant recipients and a list of applicants up for consideration of award in Round 3. Middleton moved to recommend approval of the attached suggested Fiscal Note. Supported by Gregory. Motion carried on a roll call vote with Moss voting no and Obrecht, Palmer, Patterson and Zack absent. 10. COUNTY EXECUTIVE/ARTS, CULTURE & FILM - MICHIGAN COUNCIL FOR ARTS AND CULTURAL AFFAIRS BY FISCAL YEAR 2003 REGRANTING PROGRAM GRANT APPLICATION AND ACCEPTANCE The Michigan Council for Arts and Cultural Affairs has awarded Oakland County FY 2003 funds of $68,900. This is a 1.85% or $1,300 decrease from the previous year's award. No County match or personnel is required. These funds will be redistributed to arts organizations. T he resolution authorizes acceptance of this grant agreement. Suarez moved to recommend approval of the attached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 11. DEPARTMENT OF CENTRAL SERVICES - OAKLAND COUNTY INTERNATIONAL AIRPORT - 2003 GRANT PROGRAM ACCEPTANCE - DESIGN RELOCATION OF RUNWAY 18/36, NORTH T -HANGAR AREA AND PERIMETER ROAD Oakland County has received a Michigan Department of Transportation Grant co ntract, in a total amount of $215,000, to provide consultant design for relocation of Runway 18/36, north T -Hangar area and Perimeter Road. The program includes federal funding of $193,500, state funding of $10,750 and a local grant match of $10,750, to be paid from existing Airport Funds. The Michigan Department of Transportation will act as FINANCE COMMITTEE Page 5 February 27, 2003 agent on behalf of the County for administration of the project. Middleton moved to recommend approval of the attached suggested Fiscal Note. Supported by Gregory. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 12. DEPARTMENT OF CENTRAL SERVICES - OAKLAND COUNTY INTERNATIONAL AIRPORT - 2003 GRANT PROGRAM ACCEPTANCE - DESIGN AND CONSTRUCT GROUND RUNUP ENCLOSURE Oakland County has received a Michigan Department of Transportation Grant contract, in a total amount of $2,654,000, to provide for design and construction of a ground runup enclosure. The program includes federal funding of $2,388,600, state funding of $132,700 a nd a local grant match of $132,700, to be paid from existing Airport Funds. The Michigan Department of Transportation will act as agent on behalf of the County for administration of the project. Crawford moved to recommend approval of the attached sugges ted Fiscal Note. Supported by Suarez. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 13. MR #03027 - PERSONNEL DEPARTMENT - FISCAL YEAR EXTENSION OF THE LABOR AGREEMENT FOR EMPLOYEES REPRESENTED BY THE AM ERICAN FEDERATION OF STATE, COUNTY AND MUNICIPAL EMPLOYEES (AFSCME) COUNCIL 25, LOCAL 2720 Personnel has negotiated a one -year contract extension with AFSCME Council 25, Local 2720, representing 4 Board of Commissioners' employees, for the period October 1 , 2002 - October 1, 2003. Contract provisions are consistent with non -represented employees and include a 1.5% salary increase beginning September 21, 2002, and a 1.5% salary increase beginning March 22, 2003. Suarez moved to recommend approval of the at tached suggested Fiscal Note. Supported by Crawford. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. 14. MR #03026 - DEPARTMENT OF INFORMATION TECHNOLOGY - FIRST QUARTER 2003 DEVELOPMENT APPROPRIATION TRAN SFER Information Technology is requesting authorization to appropriate and charge first quarter 2003 development costs to benefiting departments. Charges are $1,447,540.47 for data processing development and $80,352.00 for imaging development. Direct charges to Special Revenue and Proprietary fund departments are $103,575.00, with no charge this quarter to non -county agencies. Suarez moved to recommend approval of the attached suggested Fiscal Note. Supported by Webster. Motion carried unanimously on a roll call vote with Obrecht, Palmer, Patterson and Zack absent. Chairman Moss stated that the committee would consider communications at this time. COMMUNICATIONS A. Department of Management and Budget/Purchasing Division - Contract Exception Report fo r the Month of January/February, 2003 B. Industrial Facility Exemption Certificate No. 1993 -620 (Deco Technologies, Inc., Troy, Michigan) FINANCE COMMITTEE Page 6 February 27, 2003 Revoked 12/30/02 C. Industrial Facility Exemption Certification No. 1997 -417 (Osmic Inc., Troy, Michigan) Revoked effective 12/30/02 D. Correspondence from Bob Daddow: Public Safety Answering Points (PSAP) Consolidation Project Overview E. CLEMIS Financial Statements - Quarter Ended December 31, 2002 F. PBX Usage by the Cities, Villages and Townships Mr. Daddow provided a brief summary of the County's opportunity to expand use of its PBX for its communities over the OAKNet for a voice over IP solution. Considerations regarding this service are detailed in Item F. G. State of Michigan - Executive Order 2003 - 3 Crawford moved to receive and file Communications A -G. Supported by Gregory. Motion carried on a voice vote. 15. DEPARTMENT OF MANAGEMENT AND BUDGET - FISCAL YEAR 2003 FIRST QUARTER FINANCIAL FORECAST AND BUDGET AMENDMENTS Mr. Soave explained that the forecast was completed but has not been fully analyzed because of Management and Budget's efforts to complete Item 16 and requested that this item be carried forward until the next meeting on March 13, 2003. There were no objections. 16. COUNTY EXECUTIVE RECOMMENDED BUDGET ADJUSTMENTS AND AMENDMENT TO THE GENERAL APPROPRIATIONS ACT FY 2003 AND FY 2004 Mr. Daddow reviewed the events involving the State's budget problems and leading up to today's recommendation to adjust and amend the FY 2003 and FY 2004 General Appropriations Act. The FY 2003 and FY 2004 budget was originally adopted with a $13.9 million shortfall, identified as Phase I. The County's elected officials have submitted adjustments to address the FY 2004 shortfall. Phase II includes adjustments as a result of declining property taxes, investments being less than anticipated, increased health care costs, and jail overcrowding, an additional shortfall of $8.7 million. Savings resulting from the Early Retirement Incentive, deletion of vacant positions, adjustments to operating budgets, reorganizations, etc., as outlined in the Budget Document, have resulted in an adjusted FY 2004 budget task of $6.5 million, to be addressed during Phase III. The Governor will be presenting budget recommendati ons to the state legislature on March 6. It is anticipated that as the state continues to make further reductions, the County will follow. This process is expected to continue over the next several years and will be dealt with on a quarterly basis. Ms. Eaton reviewed page 18 - Summary of Phase I Annualized Position Savings. Phase I personnel savings of $7.9 million are a result of position deletions, position downgrades, reductions in summer student funding, etc. Several reorganizations will be coming forward as a result of vacancies from retirement and position deletions. OTHER BUSINESS/ADJOURNMENT There being no other business to come before the committee, the meeting was adjourned at 10:57 a.m. FINANCE COMMITTEE Page 7 February 27, 2003 ________________________ _______________________________ Helen Hanger James H. VanLeuven, Jr. Senior Committee Coordinator Administrative Director NOTE: The foregoing minutes are subject to Committee approval.